Turns out, there’s a lot of cash in pretending to get hit by a car in New York City. Unfortunately, it’s also illegal — just ask the 16 Brooklyn residents arrested today for their alleged involvement in an insurance scam that consisted staging car wrecks and, in some cases, pretending to get hit by unsuspecting motorists.
According to New York Attorney General Eric Schneiderman, the group of alleged crooks conned more than $400,000 out of several insurance companies in a scam that spanned nearly two years, from September 2009 to May 2011.
“This staged accident scheme put innocent lives in danger in order to make the perpetrators a quick buck – now they will be brought to justice,” Schneiderman says. “Breaking up this criminal operation means safer streets, and a fairer market for consumers whose insurance premiums skyrocket as a result of fraud.”
Authorities say the 16 suspects (who are listed below) used various methods to stage nine separate wrecks, including renting U-Haul trucks to crash into cabs, slapping the back of cars to make the driver think they hit someone, and even having two of those involved in the scheme crash cars into each other.
Because New York has what’s known as the Comprehensive Motor Vehicle
Insurance Reparations Act (the “No-Fault Law”), anyone in an automobile
accident is automatically entitled to reimburse from insurance companies
for a wide range of medical and health services for injuries related to
car accidents — under the law, an individual is entitled to up to
$50,000 in reimbursements.
Additionally, the AG’s Office says, a victim in a motor vehicle accident may be eligible to recover money
from an insurance carrier for a bodily injury lawsuit stemming from
injuries resulting from the accident.
Schneiderman says those
involved in the scam lied to police about the staged accidents, claiming
they were real. They also lied on insurance forms filled out after the
Some of the defendants, Schneiderman says, received money from legal settlements from the staged crashes.
suspects each have been charged with various felonies for their alleged
involvement in the scam, including insurance fraud, grand larceny and
falsifying business records, as well as misdemeanor conspiracy to commit
The suspects are as follows: